Estimates, Running Costs and Checklists
AC AMC in India: comprehensive vs non-comprehensive contracts, cost and what is covered
How AC annual maintenance contracts work in India, what comprehensive and non-comprehensive AMCs include and exclude, how to price one against pay-per-visit service.
An AC annual maintenance contract (AMC) is a prepaid service plan, usually for one year, covering a set number of preventive services (filter and coil cleaning, drain flushing, checks) and some breakdown visits. A non-comprehensive AMC covers labour and visits only; you pay for any parts and gas. A comprehensive AMC also covers listed parts, often including the compressor and sometimes gas, at a higher price, but with exclusions such as plastic parts, remote, physical damage and voltage damage. An AMC is worth it when the expected cost of services plus likely repairs in the year exceeds the AMC price, which is more common for older, out-of-warranty ACs running many hours.
Part of the AC and geyser total cost worked examples.
Types of AC service arrangements
| Arrangement | What you pay | What it covers | Watch out for |
|---|---|---|---|
| Pay per visit | Each service or repair | Whatever you order | Peak-season waits; price varies |
| Non-comprehensive AMC | Fixed yearly fee | Set number of services + breakdown visits (labour) | Parts and gas extra; check visit limits |
| Comprehensive AMC | Higher yearly fee | Services + labour + listed parts (often incl. compressor) | Exclusion list; gas may be excluded or capped |
| Extended warranty | One-time fee at or after purchase | Repairs of manufacturing defects after the standard warranty | Usually excludes routine servicing |
| Brand AMC vs third-party AMC | Varies | Brand: genuine parts, trained technicians; third party: varies | Third-party AMC may affect brand warranty if still valid |
What a typical AMC includes
Read the actual contract. Common inclusions:
- Preventive maintenance visits (often two or three a year): cleaning filters, indoor coil, outdoor coil (sometimes "wet service" with water jet), drain line, checking current draw and gas pressure
- Breakdown calls with no visit charge
- Labour for repairs
- In a comprehensive AMC: listed parts such as compressor, fan motors, PCB, capacitors
Common exclusions:
- Plastic and cosmetic parts, remote control, stand and copper pipe
- Damage from voltage fluctuation, power surge, fire, flood, pests, physical damage
- Gas top-up (in many non-comprehensive AMCs, and some comprehensive ones)
- Relocation or reinstallation
- Units older than a set age, or already faulty at the start
Pricing an AMC against pay-per-visit (illustrative)
A 1.5-ton split, 5 years old, out of warranty, used about 1,200 hours a year.
| Expected item in a year | Pay per visit (illustrative) | Covered by non-comprehensive AMC? | Covered by comprehensive AMC? |
|---|---|---|---|
| 2 wet services | 2 × ₹700 = ₹1,400 | Yes | Yes |
| 1 breakdown visit | ₹400 | Yes | Yes |
| Capacitor replacement (likely) | ₹900 | No (part) | Yes |
| Fan motor (possible, 20% chance) | ₹3,500 × 0.2 = ₹700 | No | Yes |
| Compressor failure (unlikely, 5% chance) | ₹14,000 × 0.05 = ₹700 | No | Yes |
| Expected total | ₹4,100 | You still pay about ₹2,300 in parts | You pay ₹0 for listed parts |
If the non-comprehensive AMC costs ₹1,600, your expected spend is ₹1,600 + ₹2,300 = ₹3,900. If the comprehensive AMC costs ₹4,500, expected spend is ₹4,500. Pay per visit: ₹4,100. In this example the non-comprehensive AMC is marginally cheapest, but a comprehensive AMC limits the risk of a large compressor bill. GST, generally 18%, is added to AMCs from registered providers; include it when comparing.
The probabilities are invented to show the method; your AC's age and condition matter most.
When an AMC tends to make sense
- The AC is out of warranty and older, so part failures are more likely
- It runs long hours in a dusty or coastal city
- You have several ACs at home or in an office; multi-unit AMCs are common
- You value guaranteed visits in peak summer
When it may not:
- The AC is new and within warranty for parts; you may need only routine cleaning
- You use the AC lightly
- The comprehensive AMC price approaches the cost of a new efficient unit for a very old AC
Questions to ask before signing
- How many preventive services, and in which months?
- Is "service" a dry clean or a wet service with outdoor coil cleaning?
- What is the response time for breakdowns, and does it change in peak season?
- Exactly which parts are covered? Is the compressor included? Is gas included, and is there a cap?
- Are there exclusions for voltage damage, and do you need a stabiliser?
- Does a third-party AMC affect any remaining brand warranty?
- Is the AMC transferable if you sell the house or AC?
- What happens if a covered part is unavailable?
- Is GST included in the quoted price?
Your rights if an AMC is not honoured
An AMC is a service contract. If visits are not made, covered parts are charged or a complaint is ignored, complain in writing to the provider, then contact the National Consumer Helpline (1915). A deficiency in service can be the subject of a consumer complaint under the Consumer Protection Act, 2019. See warranty claims rejected and consumer complaints on e-Jagriti.
Related reading
FAQ
How often should an AC be serviced?
Brands usually advise periodic professional service, often before and after the main season, with filter cleaning by you every few weeks during heavy use. Follow the user manual.
Does an AMC include gas refilling?
Many do not, or only with a cap. Gas should not be needed unless there is a leak, and fixing the leak is what matters.
Can I cancel an AMC midway?
It depends on the contract terms. Ask before paying and keep the terms in writing.
Sources
- National Consumer Helpline — complaints about service contracts
- e-Jagriti — consumer commission filing
- GST Council — GST on services
